Xiaomi expands its semiconductor ambitions with the XRing O3 chip, partnering with TSMC for advanced 3nm production to strengthen its hardware ecosystem
In a latest technical push Xiaomi has officially unveiled its latest proprietary smartphone processor, the XRing O3, marking a major step forward in its hardware strategy to reduce reliance on external suppliers like Qualcomm and MediaTek.
The new chip is produced by TSMC utilizing its advanced 3-nanometre (N3P) process node, packing over 24 billion transistors into a 133 mm² die.
The XRing O3 features a 10-core "all-big" CPU architecture (entirely dropping efficiency cores) and is the world's first mobile system-on-chip (SoC) to natively support ultra-fast LPDDR6 memory.
It includes a quad-core NPU delivering up to 200 TOPS of tensor performance for on-device AI models.
According to industry reports, the processor is targeted to power Xiaomi's upcoming flagship folding smartphones.
The launch comes a year after Xiaomi launched its first proprietary smartphone processor, the Xring O1, marking the latest step in the world's third-largest smartphone vendor's push to join rivals Apple, Samsung Electronics and Huawei in developing its own chips.
Smartphone processors, also known as systems-on-chip (SoC), combine computing, graphics, AI processing and imaging functions in a single component.
TSMC will manufacture the new chip using its 3-nanometre production technology, two people familiar with the matter said.
As reported, the chip is expected to power Xiaomi's upcoming flagship folding phone, with shipments targeted at 200,000 to 300,000 units.
While developing more chips in-house could give Xiaomi greater control over product features and improve its bargaining power with suppliers.
Its expansion into foldable phones, a higher-priced market segment, could intensify competition with Huawei.
According to research firm Smart Analytics Global, Huawei shipped 1.6 million foldable phones in China in the second quarter, giving it a 68% market share, followed by Honor with 13.7% and Oppo with 8.5%.
Xiaomi's chip push reflects a broader industry trend as device makers seek to differentiate their products and reduce dependence on suppliers such as Qualcomm and MediaTek amid intensifying competition in premium smartphones.
The Beijing-based company restarted development of large, in-house chips in 2021 and has said it plans to invest at least 50 billion yuan ($7.0 billion) over a decade in the effort.
Notably, both companies Xiaomi and TSMC did not disclosed additional details about chip's manufacturing production or shipment targets.